Taxable Equivalent Yield  

Municipal bonds are sold by cities, counties, states and other political bodies (public hospital, school district).

The federal government and its agencies do not sell municipal bonds. However, most municipals are free of federal taxes. Because of this, the stated interest rate on municipals is typically lower than comparable non tax-exempt bonds.

How much would you have to receive from a taxable bond to realize an equivalent yield? You can find the answer by entering the following information:

     

What is your federal income tax bracket?

What is the yield (in percentage points, 0 to 10 percent) on the municipal bond you are considering?

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etax corporation
etax corporation main office
8860 Columbia 100 Pkwy,#306
Columbia, MD 21045
301-912-3450
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etax corporation tax office branch
727 Thornwood Drive
Odenton, MD 21113
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*"Securities and Investment Advisory Services offered through KCD Financial,Inc.,Member FINRA & SIPC.  Security Products are offered in Maryland.  For the residents of the other states,information provided here is for educational purpose only."